Need Money to Grow your Business?

I have been using Kabbage on and off for almost a year, and I thought I would do another blog post about it.

If you’re unfamiliar with the company, they offer online sellers a cash advance.  Based on your selling experience, you can qualify anywhere from $500-$40,000 depending on your credit and monthly revenue.

Here’s an example of the last $600 advance that I took and the payback structure.  This includes all of the fees.

Month 1:  $184
Month 2:  $184
Month 3:  $112
Month 4   $112
Month 5   $112
Month 6   $112

So basically, I get $600 upfront and I will be paying back $816 within 6 months.  Is this worth it?  Maybe.

In my opinion, borrowing money is never really a good thing.  However, if you know for sure that you can make 3x your money on some inventory (and you know it will sell within a couple months) it might be the right move.

It’s also important to note that once you pay a monthly advance, you are eligible to take out a new advance. So, it’s possible to keep borrowing month after month and never really paying off your balance.

Disclaimer- The Kabbage link is an affiliate link. If you click on the link and end up taking an advance I will get a payment (which I appreciate very much). If you feel uncomfortable with that, you can just Google “Kabbage” and do your own research and find their website that way. Either way, it doesn’t cost you more or less. You would still be setting up an account and possibly taking out an advance.

This is just another way for a company to market their service. Instead of paying Google or Yahoo for PPC advertising, they are paying individuals (or companies) a performance based fee to help market their website. Many companies (including Amazon) use this marketing method.